Critically discuss the CMs Panel's Recommendations on rationalization of Centrally Sponsored Schemes.

The CSS are coupled with loopholes like one size fit all approach, top-down approach, overlapping of schemes and lack of co-ordination on part of states in their implementation.
It leads to inefficient implementation despite huge allocation of funds. Therefore the move by CMs to reduce the number of CSSs is a good move and it has called for rationalisation of CSSs.
The states’s share in taxes is increase to 42%, hence they will be equipped with more financial resources to run the schemes. The states also will have the flexibility in choosing the schemes which suits their states the best.
For better utilization of funds, the panel had approved transferring of funds from the central government to the state consolidated funds and not directly to implementing agencies. This will bring about transparency and accountability. The panel also recommended termination of status of Special Category States after the 14th finance recommendation. This will end the demand of states queuing up for special category status.
It is high time that states be actually given the responsibility of economic development. India does not need ‘one size fits all’ schemes. The need of the hour is a better match between schemes and what the state’s actually need. (233 words)

Topics: GS-II: Government Policies and Interventions for Development in Various Sectors